Buy & Sell Agreements
Buy & Sell Agreements are concluded when shareholders take out an insurance policy on the life or disability of another shareholder, so that on the other shareholder’s death or disability the first shareholder is paid out the funds by the policy to be able to afford to buy that other shareholder’s shares. The Buy & […]
MOI vs Shareholders Agreements
What’s the Difference? A Memorandum of Incorporation, or MOI, is a cornerstone document for any company, laying out the rights, responsibilities and duties of shareholders and directors. It is obligatory that every company has an MOI filed with the Companies and Intellectual Property Commission (“CIPC”), and the MOI is available for public viewing at a […]
The Validity of an Electronic Signature
Types of Electronic Signatures At the outset, it is important to clarify that there are two types of digital signatures: advanced electronic signatures and ordinary electronic signatures as specified by the Electronic Communications and Transactions Act (ECTA). It is also important to note that not all agreements are required by law to be signed in […]
Suretyships vs Demand Guarantees, and the Impact of Business Rescue
What is the difference between a Suretyship and a Demand Guarantee? When you want to secure any debt owed to you by a third party (such as a borrower, tenant or purchaser under an extended credit term agreement), there is a big difference between getting a Suretyship or a Demand Guarantee signed in your favour. […]
Directors’ Personal Liability During the COVID-19 Pandemic
The Companies Act: Section 22(1) of the Companies Act 71 of 2008 (“the Act”) read together with sections 218(2) and 77, set the stage for directors of a comp…
Electronic Debit Order Authorisation in South Africa: Legal or Not?
Debit orders in South Africa are considered as electronic funds transfers (EFT’s) and are governed by, amongst other documents, Bankservs’ manual for the pro…
Rental Relief During Lockdown and Approaching Landlords With Care
While we all struggle to cope with the impact of lockdown on both our businesses and personal lives, one major talking point is rental relief while we are al…